Wintoni sets sights on reverse takeover exercise

New high for Dagang NeXchange Bhd

KUALA LUMPUR: Wintoni Group Bhd has signed a memorandum of understanding (MoU) for a reverse takeover exercise that will see it entering into the business of providing engineering and technical services related to solar and storage tank farms.

In a filing with Bursa Malaysia, the Guidance Note 3 company said a company to be incorporated (NewCo) would assume the listing status of Wintoni at a later date under the exercise that entailed the proposed regularisation plan and the proposed scheme of arrangement with creditors.

Under the regularisation plan, NewCo will acquire the entire paid-up capital of Techway Engineering Sdn Bhd and Cadflex Technologies Sdn Bhd for a sum to be determined later, to be satisfied wholly by the issuance of ordinary shares of NewCo to the vendors, Lim Kuan Joo and Ismail M. Shuhud.

Techway is in the business of supplies and contractors of engineering and technical services and products relating to renewable energy such as the solar farm industry.

Cadflex, which is wholly owned by Techway, conducts research and development of engineering software and supplies engineering and technical services/products for the storage tank farm (oil depot) industry.

Wintoni said there was a confidentiality provision in the MoU and a detailed announcement on the proposed regularisation plan and proposed scheme of arrangement with creditors would be made after the signing of the relevant definitive agreements.

Wintoni suffered a loss of RM56.9mil for the financial year ended Dec 31, 2015. For the first nine months of last year, its net loss shrank to RM505,000 from RM49.65mil in the corresponding period of 2015.

According to Wintoni’s latest annual report issued last November, the company, which provides mobile application gateway services and designs automation systems - saw its business drop to an almost negligible level. It was unable to raise funding or attract new employees (most of its staff had resigned).